Business airline Eos goes bust

US business-class airline Eos has filed for Chapter 11 bankruptcy protection and has stopped operating flights. The firm said it had "insufficient cash to continue operations" after failing to win an investment that would have sustained the firm until 2009.

The entire airline industry has been battling surging fuel prices, competitive pressures and declining consumer spending, particularly in the US and UK. EOS's collapse follows the demise of rival Maxjet last December.

The airline's chief executive Jack Williams said the announcement was "particularly regrettable" after the airline had succeeded in negotiating terms for a round of financing despite the "extremely challenging economic and credit environment".

Eos was launched in 2005, flying between New York's JFK airport and the UK's Stansted. It was business class-only, and had a fleet of Boeing 757s with 48 seats that reclined into flat beds.